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George invests in a portfolio of 3 stocks with the weights and betas given in the table below. The risk-free rate is 2%, and the
George invests in a portfolio of 3 stocks with the weights and betas given in the table below. The risk-free rate is 2%, and the expected return on the market portfolio is 7.5%. Using CAPM, what is the expected return of his portfolio?
Stock | Portfolio Weight | Beta |
CMG | 25% | 1.35 |
SHAK | 15% | 1.74 |
MCD | 60% | 0.62 |
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